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Coca-Cola European Partners PLC (NYSE:CCE)
Beneish M-Score
-1.80 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Coca-Cola European Partners PLC has a M-score of -1.80 signals that the company is a manipulator.

CCE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.72   Max: -0.05
Current: -1.8

-4.72
-0.05

During the past 13 years, the highest Beneish M-Score of Coca-Cola European Partners PLC was -0.05. The lowest was -4.72. And the median was -2.59.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Coca-Cola European Partners PLC for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.4035+0.528 * 0.9611+0.404 * 1.2423+0.892 * 1.1924+0.115 * 1.6875
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1017+4.679 * -0.0206-0.327 * 0.698
=-1.80

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $2,312 Mil.
Revenue was 3351.29068462 + 2478.67865169 + 1487.72383073 + 1716.42810458 = $9,034 Mil.
Gross Profit was 1303.03030303 + 905.421348315 + 549.192650334 + 636.901960784 = $3,395 Mil.
Total Current Assets was $4,030 Mil.
Total Assets was $20,753 Mil.
Property, Plant and Equipment(Net PPE) was $4,441 Mil.
Depreciation, Depletion and Amortization(DDA) was $364 Mil.
Selling, General & Admin. Expense(SGA) was $2,389 Mil.
Total Current Liabilities was $3,804 Mil.
Long-Term Debt was $6,741 Mil.
Net Income was 367.003367003 + 170.647191011 + 64.7260579065 + 176.619825708 = $779 Mil.
Non Operating Income was -1.12233445567 + -2.51573033708 + -1.96102449889 + -0.717864923747 = $-6 Mil.
Cash Flow from Operations was 726.150392817 + 258.065168539 + 120.625835189 + 107.510893246 = $1,212 Mil.
Accounts Receivable was $1,381 Mil.
Revenue was 1838.38383838 + 1929.25476992 + 1588.65367965 + 2219.90628853 = $7,576 Mil.
Gross Profit was 701.459034792 + 705.459034792 + 553.253246753 + 775.758323058 = $2,736 Mil.
Total Current Assets was $2,258 Mil.
Total Assets was $8,184 Mil.
Property, Plant and Equipment(Net PPE) was $2,028 Mil.
Depreciation, Depletion and Amortization(DDA) was $297 Mil.
Selling, General & Admin. Expense(SGA) was $1,818 Mil.
Total Current Liabilities was $2,400 Mil.
Long-Term Debt was $3,556 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2312.00897868 / 9034.12127162) / (1381.47250281 / 7576.19857649)
=0.25591963 / 0.18234376
=1.4035

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2735.9296394 / 7576.19857649) / (3394.54626246 / 9034.12127162)
=0.36112169 / 0.37574725
=0.9611

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (4030.3030303 + 4441.07744108) / 20753.0864198) / (1 - (2257.52749719 + 2027.79349046) / 8183.66554433)
=0.59180142 / 0.47635678
=1.2423

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=9034.12127162 / 7576.19857649
=1.1924

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(297.294476729 / (297.294476729 + 2027.79349046)) / (364.092448329 / (364.092448329 + 4441.07744108))
=0.12786375 / 0.07577098
=1.6875

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(2388.81739667 / 9034.12127162) / (1818.39850583 / 7576.19857649)
=0.26442167 / 0.24001463
=1.1017

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((6740.74074074 + 3803.59147026) / 20753.0864198) / ((3556.29517396 + 2400.47362514) / 8183.66554433)
=0.50808501 / 0.72788517
=0.698

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(778.996441629 - -6.31695421538 - 1212.35228979) / 20753.0864198
=-0.0206

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Coca-Cola European Partners PLC has a M-score of -1.80 signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Coca-Cola European Partners PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.09721.00390.99952.23270.83770.84581.06091.03860.99311.023
GMI 1.02151.03561.033410.99871.00991.01681.03210.96880.9814
AQI 0.90650.99630.55691.53261.030.95251.0131.03860.96431.0253
SGI 1.05591.05451.01280.31321.00711.25940.95131.01971.02720.8336
DEPI 1.0460.96310.94661.11221.2180.84460.9981.08930.90271.0267
SGAI 0.98720.96370.99060.79641.01380.96921.01470.96980.99681.0279
LVGI 1.09610.94161.49250.38521.55371.12611.06861.09211.11631.0528
TATA -0.1174-0.0393-0.3847-0.0321-0.0233-0.0121-0.0287-0.0168-0.0365-0.0449
M-score -2.94-2.57-4.60-1.64-2.88-2.51-2.61-2.49-2.71-2.84

Coca-Cola European Partners PLC Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.21741.05520.9590.82280.80150.82281.03611.0711.59661.4035
GMI 0.99940.97870.96820.96980.97850.99030.98010.96910.97230.9611
AQI 0.96220.99950.96430.95650.98231.03091.02531.02191.32411.2423
SGI 1.04561.03671.06371.02620.96070.91850.82310.83980.95121.1924
DEPI 1.09530.94090.8330.77870.8280.9791.06891.17342.20871.6875
SGAI 0.93810.94730.99581.02920.99971.03051.02461.0581.13281.1017
LVGI 1.09211.06951.11631.14081.10241.07871.05281.00610.69830.698
TATA -0.015-0.0163-0.0387-0.0546-0.0638-0.0845-0.0454-0.0427-0.0172-0.0206
M-score -2.33-2.50-2.73-2.99-3.07-3.14-2.83-2.76-1.72-1.80
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